[no_protocol]

Whatever strategy you use, make sure you test the process of recreating the server from a backup to make sure you will actually be able to recover. You'll also have an idea how long it will take, and you can create scripts to automate the entire flow so you don't have to figure it all out while you're frantic.

I use tarsnap, as many others in this thread have shared. I also have the Digital Ocean backups option enabled, but I don't necessarily trust it. For the handful of servers I run, the small cost is worth it. Tarsnap is incredibly cheap if most of your data doesn't change from day to day.

[budhajeewa]

Is there any reason to not trust DigitalOcean's back up system?

[no_protocol]

If their entire site disappeared your backups would be gone too. You want to be able to move to a different provider if necessary.